The fundamental force that generates international trade is
A) the need for more goods and services.
B) absolute advantage.
C) the sea rule.
D) comparative advantage.
E) the existence of tariffs.
D
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Foreign direct investment occurs when a Chinese corporation
A) opens a new Chinese factory. B) purchases stock issued in China. C) purchases 1,000 shares of stock issued by an American company. D) opens a new factory in France.
When a supplier becomes more profitable
a. there is increased benefits from acquiring it b. the benefits from a stronger firm-to-firm relationship are increased c. the benefits from a stronger firm-to-firm relationship are decreased d. there is no additional reason to acquire it
Identify the correct statement about net exports.
What will be an ideal response?
A trade bloc is:
A. a tariff or quota that impedes imports. B. a group of nations that allows free trade among member nations but restricts imports from nonmember nations via tariffs and quotas. C. an area of a nation where manufacturers can import product components without paying tariffs. D. a group of nations that advertise their common export goods abroad.